GST Interest Calculator

A GST Interest Calculator helps taxpayers calculate the interest payable on delayed GST payments. Under GST law, interest is charged when tax is not paid on time or when input tax credit is wrongly claimed.

When is GST Interest Applicable?

• Late payment of GST liability
• Delayed filing of GST returns
• Incorrect claim of input tax credit (ITC)

GST Interest Rate

• 18% per annum – for delayed payment of GST
• 24% per annum – for excess or wrong ITC claims

How to Calculate GST Interest?

GST interest is calculated using the formula:

Interest = (Tax Amount × Interest Rate × Number of Days) / 365

How to Use GST Interest Calculator?

• Enter the GST amount due
• Select the applicable interest rate
• Enter the number of delayed days
• Click calculate to get the interest amount

Benefits of Using GST Interest Calculator

• Accurate interest calculation
• Saves time and effort
• Avoids manual errors
• Helps in GST compliance

Who Should Use This Calculator?

This calculator is useful for business owners, accountants, GST practitioners, and taxpayers who need to calculate interest on delayed GST payments.

Important Notes

• Interest is calculated on a daily basis
• Applicable only on outstanding tax liability
• Timely filing helps avoid penalties and interest

FAQs

1. What is the GST interest rate for late payment?
18% per annum is applicable for delayed GST payments.

2. Is GST interest calculated daily?
Yes, GST interest is calculated on a daily basis.

3. When does GST interest start?
It starts from the due date of GST payment until the actual payment date.

4. Can GST interest be avoided?
Yes, by paying GST on time and filing returns before the due date.